Kathleen Folbigg Receives $2 Million Compensation After 20 Years in Prison

August 7, 2025 — After a long and harrowing journey, Kathleen Folbigg has been granted $2 million in compensation by the New South Wales (NSW) attorney-general, Michael Daley, following her exoneration and release from prison after 20 years of wrongful incarceration.

Kathleen Folbigg was originally convicted in 2003 of the murders of her four children—Patrick, Sarah, and Laura, and the manslaughter of Caleb—between 1989 and 1999. Her convictions were overturned in 2023 after a re-examination of the evidence, and she was officially exonerated. In 2024, she applied for compensation, which the NSW government has now approved, albeit with a decision to keep the details of the compensation process confidential.

Michael Daley, the attorney-general, stated that the decision followed a thorough review of the case and the materials provided by Folbigg’s legal representatives. However, the amount—$2 million—has sparked controversy and criticism from Folbigg’s solicitor and close friends, who argue that it is insufficient given the scale of the injustice.

Kathleen Folbigg’s solicitor, Rhanee Rego, called the compensation “profoundly unfair and unjust.” She highlighted that Folbigg had spent two decades in prison for a crime she did not commit, and the $2 million does not reflect the full extent of her suffering. Rego compared the amount to the $1.7 million received by Lindy Chamberlain in 1994 after being exonerated for the alleged murder of her infant daughter, despite serving only three years in prison.

“This should be about the system recognizing the significance of what it did to her,” Rego said. “An inquiry is needed to understand how the government decided on this figure.”

Folbigg’s long-time friend, Tracy Chapman, described the compensation as “barely covering” the financial and emotional toll of her imprisonment. “She literally said, ‘I have no words,’” Chapman said, adding that Folbigg would need ongoing mental health support for the rest of her life.

NSW Greens MLC Sue Higginson called the compensation offer “go away” money, arguing that it failed to account for the full impact of Folbigg’s wrongful imprisonment. “Kathleen has not only lost 20 years of wages, she has lost her four children, her home, and her employability,” Higginson said. “This is one of the worst injustices in this state’s history.”

Folbigg’s legal team is now calling for an independent inquiry into how the compensation figure was determined, emphasizing the need for transparency and accountability. They have requested access to the expert analysis that informed the decision, expressing frustration with the lack of clarity surrounding the process.

As Folbigg begins to rebuild her life outside of prison, the case has reignited discussions about the need for reform in the criminal justice system and the importance of ensuring that innocent people are not wrongfully convicted. It also raises questions about the adequacy of compensation for those who have suffered extreme injustice due to systemic failures.

Folbigg’s story is a powerful reminder of the human cost of wrongful convictions and the long road to justice. While the $2 million may be a step toward recognition, many believe it falls far short of what is truly deserved.